Oil prices dropped below $80 last week for the first time in almost 10 months after reports forecasted a continued bleak economic outlook.

Oil Demand Less

The U.S. Energy Department forecast oil demand in the U.S. and Europe will fall for the second year in a row after the first half of 2012 reflected slower growth than initially expected. Oil stockpiles are at their highest level in 22 years and increased by 2.9 million barrels last week to 387 million barrels. But then isn't that what the result for which the president as pushing as incententive are made to those who purchase electric and hybrid vehicles while manufacturers are mandated to dramatically inccrease their overall efficiency. In fact, according to THE WHITE HOUSE BLOG, US auto fuel efficiency will be 54.5 miles per gallon for cars and light trucks. 

Manufacturing numbers continue to slide in the U.S., China, and Europe—the world's largest oil consuming countries—and job growth remains minimal. Although global leaders are working to put together an economic stimulus plan, the process is expected to take time and is not likely to cause an immediate spike in fuel costs. A barrel of oil closed Friday at $79.76 on the New York Mercantile Exchange—$4.27 less than the week prior.

Motorists Enjoying Savings

"At this point, retail gasoline prices are forecast to continue their decline into the heart of the summer travel season," said Jessica Brady, AAA spokeswoman, The Auto Club Group. "Even if economic stimulus measures are put into place, it's going to take time for a recovery and demand numbers to rebound. While it's not good news that has caused oil and gas prices to fall, it does provide relief to motorists who expected to pay $4 or more for a gallon of gas this summer."

$3.05/gal. in 'Boro

The national average price of regular unleaded gasoline is $3.42, 8 cents less than last week. Georgia’s average of $3.21 decreased 5 cents from last week, Florida’s average of $3.26 fell 6 cents, and Tennessee’s average price of $3.10 dropped 7 cents from last week, respectively. One discounter in the 'Boro is playing games by posting a "cash" price. However, others are now matching that rate and offering regular octane gas for $3.05 per gallon.